As part of the review directed by the Jan. 2021 Executive Order on Tackling the Climate Crisis at Home and Abroad, the Interior Dept. today announced the release of a report on federal oil and natural gas leasing and permitting practices.
As to offshore oil and gas leasing, the report recommends that the Bureau of Ocean Energy Management consider alternatives to area-wide leasing, stating that area-wide leasing is not required by law. It specifically notes that “[m]oving to a leasing model where smaller areas are offered according to a number of criteria – including environmental protection, subsistence use needs, resource potential and financial considerations – will help ensure that American taxpayers are receiving a fair return…”
The report also notes BOEM development of a “Fitness to Operate” standard for companies seeking to be designated as operators, stating that minimal fitness standards “will ensure companies can meet their safety, environmental, and financial responsibilities.”
Interior Sec. Deb Haaland said that DOI “has an obligation to responsibly manage our public lands and waters – providing a fair return to the taxpayer and mitigating worsening climate impacts – while staying steadfast in the pursuit of environmental justice,” adding that the review “outlines significant deficiencies in the federal oil and gas programs, and identifies important and urgent fiscal and programmatic reforms that will benefit the American people.”
